Every company has strengths and weaknesses. It is valuable for a manager to determine what they are as soon as possible after joining a company, whether they are responsible for a department, or the whole company. A fast and simple way to do this is with a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Every business student learns this as part of their curriculum. After determining what the companies (or department's) strengths, weaknesses, opportunities, and threats, the manager can create infrastructure projects to enhance the strengths and mitigate the weaknesses. By putting together a focused plan, many of the weaknesses can be turned into strengths. If the team participates in brainstorming the lists for the SWOT analysis, they are more likely to buy into the plan that comes out of exercise. Sometimes the brainstorming session can be very enlightening for the manager, but sometimes the brainstorm only produces generalities that are hard to act upon. The following list is provided from many SWOT exercises to give examples of the kinds of things that can go on to the lists. Most of these items can be worded to be either a strength, weakness, opportunity or threat, depending on its applicability to the specific company or department. Usually the strength list is considerably shorter than the weakness list. This is normal, because most managers and employees tend to focus more on what is wrong more than what is right. Be careful not to ignore the strengths. Enhancing the strengths is important, particularly in a successful company. Also it is good to know what the company views as its strengths when marketing to existing and potential customers. Once the SWOT analysis is completed, the next step is to turn the lists into projects or actions. Then those projects/actions must be prioritized. The methodology for prioritizing projects will be the subject of a future blog post.
Here are the examples of strengths, weaknesses, opportunities and threats. Remember that almost all of them can be reworded to go from a strength to a weakness and vice versa.
Market or Industry
Semiconductor, Lighting, EMS, or other Industry
Have not exploited __________ (ex. Medical, Aerospace,Oil & Gas) industry potential
Too Concentrated in ___________ industry
Not diversified
Global presence
Presence in LCR (Low Cost Region)
Reliance on too few Customers / Industries
__________ Industry is using more, and more complex ______ (ex. Plastics, Ceramics, Castings)
Close to customers geographically
Close to suppliers geographically
Sales
Too much focus on only a few customers
Success in gaining new customers
Effectiveness of Sales effort towards non-industry customers
Low Cost Quote Model - mark up is very competitive
Customers
Good penetration with existing customers
Poor cause/effect understanding of Customer Programs
Flexibility to Customer is Disruptive and costly
We are hard to do business with (communication)
Recognized name with key customers
Loyalty of long term customers
Perceived as flexible and responsive by customers
Strong relationship with primary customer
Ability to adapt to customer needs
Customer Base
Strength of primary customer
Loyalty of Customers - Long Term
Enjoy long term repeat business
Personnel Characteristics
Work ethic of personnel
Stable long term personnel
Dedicated + Hard working work force
Dedicated management + employees
Good Labor Pool – Technicians, Engineers, Programmers, etc.
Human Resources
Ineffective Performance Reviews
Benefits attract talented personnel
High turnover of new hires
Free medical/dental for employees
Low employee turnover w/exceptions
Employee Benefits + HR Support
Inter-Dept conflict Resolution Process
Retention of talent
Lack of Enhancement Training
Lack of Training for required skills
Measurement of training effectiveness
Company & Executive Management
Too Many New Senior Managers
Duplication of functions in more than one department
Financial stability
Recognized name & history
Treatment of employees
Lack of recognition of employee effort
Senior Management skills
Lack of team building
Management Commitment to Quality Products
Communication with employees
Training for required skills
Size of company
Over reaction to customer demands
Prevention of issues
Poor Resource Reallocation Based on Changing Situations
Corporate micro-management
Success in achieving top objectives
Company Culture
Shoot the messenger/blame others/CYA culture
CYA Mentality
I’m OK if my task is complete
I’m OK – You’re not OK
Desire to push tasks/functions on others (Even if it is inappropriate)
High Stress Environment is the Routine
React to issues vs. prevent issues
Minimal bureaucracy
Department silos
Email overload, including abuse of "copy all"
Strategy
Product line too diverse
Poor strategic planning discipline and execution
Lack of Desire for Global Success
No plan to build infrastructure
Strategy for growth
Identity Crisis -
Examples - Engineering Company
Semi-conductor company
Technology Leader
Capabilities
Customer Service/order entry errors
Assembly Procedures are out of date
Poor purchasing control
No Cost Reduction Program
Inventory Accuracy
Lack of resources for supplier management
Quality and amount of machinery
Low Cost Product
Availability of technology tools on shop floor
New Product Introduction (NPI) Process
Capacity
Capacity Planning
Ability to ramp/grow
Lead Times are too long:
To customers
From suppliers
From our shop
Manufacturing Processes & Expertise (custom products)
Good work instructions for Operators and Assemblers
Flexibility internally- Perceived as responsive to customer
Ability to find cost reductions
Delays in NPI processes
Supplier management
Effectiveness and efficiency of production planning
Don't always follow good work instructions
Poor shop floor travelers (sequences missing or wrong)
Expansion capability
Customer Service
Capability to produce parts quickly using prototype shop
Quick reaction to customer needs
Flexibility to meet customer needs
Slow to adapt to new customer requirements
Late Deliveries
Planning/Execution of transferring products between sites (mostly between US and Asia)
Availability of tools to do the job in office (phones, laptop)
IT
Good ERP, email and Document Management systems
Availability of information from ERP
Ineffective information systems
Standard Electronic reports are not user Friendly
Email Overload
“Reply to All” is used too often
Poor IT Support
Difficult to obtain IT support
Effective use of ERP system
Automated information system-pc’s availability
Outlook, Eng Software (3D to 2D),
Finance/Accounting/Costs
Internal Audit Program
Profitability
Actual product costs are not Accurate
Ineffective accounting support to factories
High overhead
Low fixed costs
Quality
Timeliness of incoming inspection
Quality of product
Process Control
ISO certified
Field Service Processes
Inadequate testing prior to release
Timely support from QA dept
Incoming Inspection
Poor perception of the value of, and little respect for the Quality Organization
Engineering, R&D, Technical Capability
Diversity of Technical Skills
Good technical resources for customers in engineering and production
R&D capability
Good diversity of technical skills in _______ (ex. Plastics, ceramics, machining, etc.)
Prototype capability
Engineers don’t spend enough time on the shop floor
Document Control
Engineering Change Order (ECO) Process
New product development (DFM/TTM)
Depth of technical knowledge
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